What happens when I deposit money with Betterment?

When you deposit money with Betterment, your money is transferred to Betterment Securities, a FINRA member broker-dealer, with instructions to buy ETFs based on your desired asset allocation between stocks and bonds (Betterment’s two investment baskets). You own shares in the stock and bond ETFs that Betterment recommends for these two baskets and Betterment manages buying and selling them for you.

Your funds are automatically invested within 1-2 business days into Betterment's portfolio, based on our algorithm's recommended mix of funds, tailored to your individual needs. You'll receive a confirmation email that details the shares purchased, and your Betterment balance will update daily based on the market value of those shares. As Betterment is a long-term passive investment platform, rather than an self-directed trading platform, we do not keep your funds in cash, nor do you select specific securities to purchase.

Investments: Not FDIC Insured • No Bank Guarantee • May Lose Value. Investing in securities involves risks, and there is always the potential of losing money when you invest in securities. Before investing, consider your investment objectives and Betterment's charges and expenses. Betterment's internet-based services are designed to assist clients in achieving discrete financial goals. They are not intended to provide comprehensive tax advice or financial planning with respect to every aspect of a client's financial situation and do not incorporate specific investments that clients hold elsewhere. For more details, see our Form ADV Part 2 and other disclosures. Past performance does not guarantee future results, and the likelihood of investment outcomes are hypothetical in nature. Not an offer, solicitation of an offer, or advice to buy or sell securities in jurisdictions where Betterment is not registered. Market Data by Xignite.